Open interest in Natural Gas futures markets increased for the second session in a row on Thursday, this time by around 30.6K contracts. In the same direction, volume went up by around 45.7K contracts, prolonging the erratic performance seen as of late.
Natural Gas Prices Forecast
Thursday’s negative price action in Natural Gas in combination with rising open interest and volume hints at the likeliness than further downside is in store in the short-term horizon.
Against this, there are rising bets of a potential visit to monthly lows in sub-$1.80 levels (May 13). If this area is cleared, then the mid-April lows in the $1.70 neighbourhood should emerge as the next support of relevance. On the upside, the 200-day SMA at $2.162 still caps the upside for the time being.